The month in review: Regional Vic
By Herron Todd White
November, 2009
MILDURA
There are currently several large projects either underway,
or hopefully not far off commencing, in the Mildura region.
These projects have the potential to compensate for the
reduced income being generated by the winegrape
industry – which for the past 10 years has been one of the
main generators of wealth in this district, however due to
a combination of oversupply and low prices is now much
less profitable.
In the nearby town of Robinvale, 80 kilometres to the
south east of Mildura, approximately $48 million has
been spent in the past 18 months on modernising the
irrigation supply system that services the approximately
2,000 hectares of mostly table grapes in the district.
Plans are currently being drawn up to do a similar, but
staged upgrade in the irrigation districts surrounding
Mildura. This would cost up to $350 million, spread over
at least 3 years, and provide considerable opportunity
for local contractors. Funding the first stage has been
committed, and hopefully work will get underway
shortly.
A further significant development, described as “the
most ambitious project ever contemplated in North
West Victoria and South West New South Wales”, is
the proposed $300 million project to construct a 220
kilometre standard gauge rail line from Menindee (NSW)
to Mildura (Victoria).
The main advantage of this project would be the ability to
carry double stacked containers straight from Melbourne
to Darwin. Currently six small trains get reloaded into
one large train at a point to the north of Adelaide for
the journey to Darwin, adding considerable time and
expense to the journey. The railway would also service
the expanding mineral sands industry in the Pooncarie
region.
The proposal would also involve the construction of a
new intermodal facility just south of Mildura, the removal
of 22 railway crossings in the built up area of Mildura
and the opening up of the Mildura riverfront, which
is currently separated from the city by an infrequently
used railway line. This project could transform the local
economy and help develop the riverfront as a major
tourist destination.
Unfortunately our government seems focussed on
short term economic stimulus, rather than long term
infrastructure projects, and getting the necessary funding
for this project is still not certain.
Our perennial infrastructure project is the much
discussed establishment of one or more large solar power
generation facilities. There are several international
companies doing their sums at present on projects
that could involve hundreds of million of dollars, create
significant employment and help put Mildura on the map
as a centre for renewable energy.
There are positive signs that at least one such solar project
will get off the ground, which should see increased
demand for housing in the nearby town of Red Cliffs, as
well as the wider Mildura region.
There are continuing positive signs that the residential
market is improving, and that existing property owners
are taking the opportunity to upgrade to higher value
homes.
SALE
Within the Gippsland region of Victoria, the local economy
is enjoying the benefits of both the Federal Government’s
National Building Program as well as some large national
and base industry expansions.
The widening of the Princes Highway between the
main regional Gippsland Centres of Traralgon and Sale
commences in early 2010. The Princes Highway East
- Traralgon to Sale duplication involves widening the
Princes Highway between Traralgon and Sale to provide
two lanes in each direction. The project will cover road
works over approximately 44 kilometres in total. This is a
$175,000,000 project, which will reduce travel times and
create a safer and more efficient freight transport system
from Melbourne to Sale.
The recent approval of the $3.1 billion desalination plant
near Wonthaggie in south Gippsland is expected to create
some 3,180 full time jobs during the construction phase,
with 150 full time jobs on going post construction.
The approval for Esso and BHP Billiton to develop the $1.4
billion Turrum Oil and Gas Project in Bass Strait will have a
significant impact on the Gippsland economy, with up to
100 additional jobs created in the construction phase and
significant flow-on benefits for supporting industries and
local businesses in Gippsland.
The recent relocation of RAAF Officer Training School
(OTS) from Point Cook near Melbourne to East Sale RAAF
Base has seen $50 million spent on new training facilities
with 70 permanent staff employed and 700 students
each year studying at the Base. There is also a current
push for the Basic Flight Training School to be relocated
from Tamworth to Sale, with the potential for Sale to
become a national super Base in the future. The Sale
residential market as a result of the Turrum Project and
OTS relocation has seen demand exceeding supply of
available housing stock. Prices for vacant allotments have
also risen and there is now limited choice and a shortage
of residential land supply in Sale.
SWAN HILL
Being basically a rural area there have been no major
infrastructure projects undertaken in the last few years
apart from land in the township developed for residential
and industrial purposes. These projects have not involved
any major changes to roads, etc but have had an important
impact on the town as there was some demand for
additional land, particularly residential allotments. The
recent government stimulus packages will result in some
funds for upgrading of schools in our area but in most
cases the funding is relatively minor in comparison to the
school infrastructure that is already in place.
The one major project that has been on the drawing
board for many years is a new bridge over the Murray
River at Swan Hill, which has finally progressed to the
point where the options for the location of the bridge
have been narrowed down to three sites. It may still
take many years for the process to be completed and
the bridge constructed but this would have a major
positive impact on the traffic flow between Victoria and
New South Wales at this location on the Murray River and
would certainly be beneficial to the township as well as
this area in general.
In relation to the ResFactor scales in our area the market
factors for all classes of property have not altered greatly
since the last schedule was completed.
ECHUCA
Echuca-Moama has two topical planning and
infrastructure projects currently under consideration/
review including the investigation of the mid west option
for a second bridge crossing along with the progression
of new Local Environment Plan (LEP) for Moama.
At a recent information session held by Vicroads, further
consultation and feedback was sought from the public for
the mid west bridge option which will see a second bridge
crossing constructed according to the plan provided
below. Information provided by Vicroads indicates that
this option would reduce north and south traffic volumes
to the existing bridge significantly while only marginally
increasing volumes South of it’s inception at Warren Street
and north of it’s inception at the Cobb Highway. Several
locals have voiced concerns surrounding the impact of
the route on the values of existing properties located in
Warren and Crofton Streets in relatively close proximity
to the proposed route. The effect on Victoria parks and
its environs also continues to be of significant concern
for many local residents. An outcome of the forum
held on Monday 5th October is yet to be determined
though the mid west options will marry up well with the
expanding residential development south west of the
main township.
Meanwhile the Murray Shire remains committed to
adopting a new Local Environment Plan (the existing
plan was adopted in 1989) in line with the Moama
Development Strategy (2003), strategic land use plan
(2007), north west master plan (2008) and development
control plan (2004). The proposed new LEP (currently at
draft stage) has been resubmitted to the Department of
Planning for their consideration and will be available to
the public pending acceptance by the Department of
Planning. It is anticipated that the new LEP will cater for
growth in the town over the next 15 years and is likely to
see large tracts of land to the north west of the township.
The Murray Shire is hoping to have the new LEP in place
within an 18 month time frame which will enable more
certainty for all involved in the development process.
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